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Tuesday, September 17, 2013

The HighMark Deal is Done

Reported by Tommy Fernandez

The wedding ceremony is over, the marrying parties have kissed, and the rice has been thrown. Now all that's left is the honeymoon in Tahiti, or maybe Paris.

Nationwide [profile] reported that it has completed its acquisition of 17 equity and fixed-income HighMark Capital mutual funds from Union Bank.

News of the deal, which included sale of HighMark's money market funds to Natixis arm Reich & Tang, first broke in April, including this announcement from Nationwide.

Nationwide Funds president Michael Spangler later outlined the strategic reasons for the deal to MFWire in this story.

The terms of the deal were not disclosed.

According to the company, the transaction provides Nationwide with approximately $3.6 billion in new assets, and expands the suite of investment strategies Nationwide Funds offers financial advisors and their clients. Nationwide Funds now has more than $52 billion in assets under management.

"This acquisition is another significant step to expand our mutual fund business and strengthens our role as a strategic partner to financial advisors," stated Kirt Walker, president and chief operating officer of Nationwide Financial. "Adding these funds enables Nationwide to build upon the variety of investment strategies we provide to help meet the needs of financial advisors to help their clients prepare for and live in retirement."

HighMark Capital will be the subadvisor to nine of these new Nationwide Funds. The remaining eight funds will continue to be subadvised by one of three other asset managers: Bailard, Inc., Geneva Capital Management, Ltd., and Ziegler Lotsoff Capital Management, LLC. Nationwide is continuing these existing relationships.

Cambridge International Partners, Inc. was engaged as financial adviser to Nationwide Financial, and Stradley Ronon Stevens & Young, LLP was retained as its legal counsel. HighMark Capital Management and Union Bank engaged Berkshire Capital Securities, LLC as their financial adviser and Bingham McCutchen, LLP as their legal counsel.

Here is the press release:
Company Press Release

Nationwide Financial Completes Acquisition of 17 Equity and Bond Funds from HighMark Capital

Nationwide Funds now manages approximately $52 billion in net assets

?COLUMBUS, Ohio, Sep 16, 2013 -- Nationwide Financial today announced it has completed its acquisition of 17 equity and fixed-income mutual funds from HighMark Capital Management, Inc. This transaction provides Nationwide Financial's mutual fund business, Nationwide Funds, with approximately $3.6 billion in new assets, and expands the suite of investment strategies Nationwide Funds offers financial advisors and their clients. Nationwide Funds now has more than $52 billion in assets under management.(1)Terms of the transaction are not being disclosed.

"This acquisition is another significant step to expand our mutual fund business and strengthens our role as a strategic partner to financial advisors," said Kirt Walker, president and chief operating officer of Nationwide Financial. "Adding these funds enables Nationwide to build upon the variety of investment strategies we provide to help meet the needs of financial advisors to help their clients prepare for and live in retirement."

Walker said the acquired mutual funds increase Nationwide's product breadth and quality with the addition of five funds that have four or five-star ratings, and noted that several are included in model portfolios and recommended lists at their partner firms. All 17 funds will be available for trading beginning Tuesday, Sept. 17.

HighMark Capital will be the subadviser to nine of these new Nationwide Funds. The remaining eight funds will continue to be subadvised by one of three other asset managers: Bailard, Inc., Geneva Capital Management, Ltd., and Ziegler Lotsoff Capital Management, LLC. Nationwide is continuing these existing relationships.

"Since our announcement in April, the organizations have continued to provide strong value and performance to their clients while working toward a successful close of the transaction," said Michael Spangler, president of Nationwide Funds. "We are proud to add these funds to our investment offerings and are committed to providing stability and continuity to existing and future shareholders."

Cambridge International Partners, Inc. was engaged as financial adviser to Nationwide Financial, and Stradley Ronon Stevens & Young, LLP was retained as its legal counsel. HighMark Capital Management and Union Bank engaged Berkshire Capital Securities, LLC as their financial adviser and Bingham McCutchen, LLP as their legal counsel.

Investors interested in learning more about Nationwide Funds should contact their financial advisor or visit the Nationwide Funds website. Financial advisors interested in learning more should call the Nationwide Funds sales desk at 877-877-5083, option 3, go to http://www.nationwide.com/financial/advisor-highmark-acquisition.jsp and can follow @NationwideFunds on Twitter for market commentary, news and insights.

About Nationwide Funds

Based in the Philadelphia area, Nationwide Funds is the mutual fund business of Nationwide Financial Services Inc., a leading provider of long-term savings and retirement products and a Nationwide Insurance company. A strategic partner to advisors, Nationwide Funds provides a full family of sub-advised mutual funds designed to help meet the unique investment goals and risk tolerances of their investor clients. As of March 31, 2013, Nationwide Funds manages 91 funds with approximately $46 billion in assets, excluding fund of funds.

About Nationwide

Nationwide Mutual Insurance Company, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor's. The company provides customers a full range of insurance and financial services, including auto insurance, motorcycle, boat, homeowners, pet, life insurance, farm, commercial insurance, annuities, mortgages, mutual funds, pensions, long-term savings plans and specialty health services. For more information, visit www.nationwide.com.

Nationwide, Nationwide Financial, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.

Investing in mutual funds involves risk, including the possible loss of principal. Investors' shares, when redeemed, may be worth more or less than their original cost.

Investors should carefully consider a fund's investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds Group, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.

Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, King of Prussia, Pa. NFD is not an affiliate of any subadviser discussed in this material.

(1) As of Sept. 16, 2013, net of fund of funds

SOURCE: Nationwide
 

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